The debt consolidation is a type of loan that brings together all the loans that are in progress, in a single and new loan, all types of different debts can be consolidated.
That is, to reunify all your loans seeks to obtain two fundamental advantages that are:
This reunification of debts generally requires the realization of a wide range of negotiations, consultations, clarifications and elections in the changing financial world, which is not characterized precisely by its simplicity, full of conditions, terms and clauses not always accessible to the individual. That is why many companies, agencies and intermediaries offer to take charge of this work in exchange for a commission. The Organization of Consumers and Users (OCU) warned of the high cost of going to the companies of debt reunification, because they propose operations with high expenses and high commissions, that the client could perform in his financial institution at a reasonable cost lower.
It should also be remembered that their services involve paying more taxes and, above all, increasing the debt even more. The OCU emphasizes that the offer of these companies is based on aggressive advertising with respect to the recent interest rate hikes, where it focuses on achieving a significant reduction in the quotas that consumers pay for their different credits, both mortgages, consumer loans, credit cards or commercial establishments. What is not mentioned is that they charge high commissions (up to 7%) for a service that consumers themselves can negotiate with their financial institution at a significantly lower cost.
The note also criticizes that these companies also do not say that the reunification of debts, supposes to pay less, but for a longer time, so that it can have a much higher final cost for the consumers, because they inevitably compare the debt quota of different terms, which can lead to errors for users. It is important to know that m as commissions, plus tax… m to s debt make hese companies are simply advisors, who merely write off loans outstanding and propose a new mortgage, the necessary amount to pay the outstanding principal plus high commissions that are charged and the expenses that the operation assumes at the end of it. With respect to the high commissions that can be charged, for the important expenses (commissions plus the sum of taxes) that the operation entails and for the increase of the debt to be paid by the consumer, the OCU discourages resorting to this type of companies and recommends to go first to the user’s financial institution or even to other banks.